Tianjin Tingyi, Hebei Zhongwang set up noodle JV
(chinadaily.com.cn)
Updated: 2004-01-02 14:48

Tianjin Tingyi International Food Co Ltd, a unit of Taiwan Province's Tinghsin International Group, has agreed to set up a 50-50 food joint venture with private instant noodle maker, Hebei Zhongwang Group, making products aimed at the mainland's rural market, Tingshin said.

Under the agreement, Tianjin Tingyi will inject 300 million yuan (US$36.24 million) cash into the venture, while partner Zhongwang will contribute existing instant noodle production facilities, Tianjin Tingyi said.

The partners plan to expand the venture's instant noodle production lines to 60 from the current 31 within a year, it said.

"It a win-win deal that allows Tingyi to extend into the mainland's rural market and, at the same time, help Zhongwang improve its competitiveness," Zhongwang's chairman and president Wang Zhongwang said.

Wang said the growth potential of the mainland's instant noodle market can be seen in the average per capita consumption level of 12 packs per year, which compares with 80 packs in South Korea and Japan.

Since its entry into the mainland in 1989, Tinghsin has invested a total of 15 billion yuan (US$1.81 billion) in the noodle, bakery and beverage sectors. The group's Hong Kong listed arm, Tingyi (Cayman Islands) Holding Corp booked US$361 million in turnover in the third quarter, up 6.85 percent year-on-year.

Turnover for the first nine months was up 9.66 percent at 954 million. Turnover from instant noodles, which accounted for 55 percent of the company's total turnover rose 14.39 percent to US$197 million in the third quarter, with the nine month figure up 20.3 percent at 563 million. \

The group currently holds a 30.7 percent share of the mainland's instant noodle market by sales volume and 40.8 percent by turnover, according to statistics provided by AC Nielsen. It major rival, Uni-President Group, also from Taiwan, holds a 20 percent share in the mainland's instant noodle market in terms of sales volume.

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